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Discussion > Excise >

Excise Duty by 1st or 2nd Stage Dealer...!

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Finance Professional


[ Scorecard : 506]
Posted On 16 February 2009 at 18:49 Report Abuse

Hi..

My query is... A - is a manufacturer and B - is a Trader...

Both are located in one State say Maharashtra...

Now B" purchases materials from A' @ Rs.100/- + 10.30% + 4% VAT p/kg

and want to sell the same to C" who is located outside Mah- say Gujarat

@ Rs.120/- + 10.30% + 2% CST

Is this transaction is possible under Excise, b'se the manufacturer is charging

a duty of Rs.10.30/- and the Trader wants to charge the duty @ Rs.12.36/-

Can he make any payment by PLA [ of Rs.2.36/- ] ?

Reason behind this is that B" dont want to disclose its customer to A' and want

to sell the material at a higher value with a profit of Rs.20/- p/kg

Please explain....Thanks in Advance


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Rajesh Kumar
Advocate- Taxation & Corporate


[ Scorecard : 3995]
Posted On 16 February 2009 at 20:56

Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law.

However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be Rs. 10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer.



Total thanks : 2 times




Rajeev Nair
Finance Professional


[ Scorecard : 506]
Posted On 17 February 2009 at 11:26

Rajeshji, thanks for the comments...regret that i wont be able to get into this business, as it would be disclosing my purchase price to the customer [C]

However...thanks once again...




Prateek
Director


[ Scorecard : 34]
Posted On 24 February 2009 at 22:28

Hi..

My query is... A - is a 1st Stage Dealer and B - is a Manufacturer...

Both are located in one State of West Bengal...

Now "B" purchases Oil from A' @ Rs.33 + 12.5% VAT

"A" gives two bills to "B".

1) Excise Bill (1st stage dealer bill) which shows Basic Rate @ Rs. 44 + 14.42% Excise, and gives details of Invoice  from Indian Oil @ Rs. 44 + 14.42%

2) VAT Bill @ Rs. 33 + 12.5% VAT.

"B" pays Rs. 33 + 12.5% only.

Can "B" claim Excise for 44x14.42% ? If not then for what rate can it claim.

Please explain....Thanks in Advance

P.S. The Excise Rate applicable on the prodcut is 14.42%




Rajesh Kumar
Advocate- Taxation & Corporate


[ Scorecard : 3995]
Posted On 25 February 2009 at 01:51

The dealer will take credit of duty paid by the manufacturer. further the dealer will pass on credit paid by the manufacturer. Any change in price, in between is irrelevant.




Raja. P
Accountant


[ Scorecard : 20]
Posted On 03 August 2009 at 16:00

Can we pass on ACD 4% also?




Ajit Kumar Thakur
service


[ Scorecard : 22]
Posted On 07 September 2009 at 16:17

Originally posted by :Rajesh Kumar
" Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law.
However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be Rs. 10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer.
"




AP Mathi
ACCOUNTS MANAGER


[ Scorecard : 21]
Posted On 30 March 2010 at 11:45

we are 1st stage dealer in mumbai and we have branch at Gujrat  my query is whether we can transfer our excise duty to gujrat and what is our position whether we are a 1st stage dealer in gujrat or 2nd stage dealer in Gujrat

A.P.mathi




R.Sankaranarayanan
Indirect Tax Executive


[ Scorecard : 132]
Posted On 15 July 2011 at 17:51

Hi Mr. Rajesh, 

 

""Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law.

However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be Rs. 10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer.""




Can you please provide me with the info regarding the relevant Section / Rule / Notification  , which require the Central Excise dealer to disclose his procurement details??


Thanks in advance...




U S Sharma
glidor@gmail.com


[ Scorecard : 19398]
Posted On 15 July 2011 at 18:50

Originally posted by : R.Sankaranarayanan

Hi Mr. Rajesh, 

 

""Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law.

However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer.""










Can you please provide me with the info regarding the relevant Section / Rule / Notification  , which require the Central Excise dealer to disclose his procurement details??




Thanks in advance...

http://www.caclubindia.com/forum/files_download.asp?msg_id=405042



download the file, try to fill it and understand what the dealer is likely to fill out and disclose in dealers invoice. 


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